There are two types of foreclosure allowed in California, Judicial Foreclosure and Non-Judicial
Judicial Foreclosure is very rare in California and requires the lender to sue the owner in
foreclosure and proceed with a trial in a court of law. Appraisals and other items are required,
and there is still an auction. The owner has the right of redemption allowing them to buy it back
from the successful bidder at auction for 1 year after the sale. The advantage of judicial
foreclosure for the lender is that they can receive a deficiency judgment against the borrower
for the difference between the amount owed (including penalties, fees and costs), and the amount
received at auction.
Non-Judicial Foreclosure is what most people are referring to when they talk about "foreclosure"
in California. When using non-judicial foreclosure lenders give up their right to collect a
deficiency judgment against the borrower, however, most lenders prefer this process given the
expedited time frame and minimal costs. Non-judicial foreclosure sales are typically postponed 1
or more times, and can be postponed for up to 1 year based on certain postponement reasons.
Key California Foreclosure Laws:
Non-Judicial Foreclosure - Civil Code 2924
Foreclosure Consultants - Civil Code 2945
Home Equity Purchaser - Civil Code 1695
Rent Skimming - Civil Code 890
HOA Lien Foreclosure - Civil Code 1367
Deficiency Judgments - Code of Civil Procedure 580
Banks will use “trustees” to help them in a foreclosure. Trustees, acting for the bank,
sends out a Notice of Default and later a Notice of Trustee Sale (the auction sale). If you
are unable to stop the sale, your home is sold at auction. The new buyer is either the
bank that has the loan or the home is sold to the highest bidder at the auction. My office
can protect you and your home.
Trustees can be held liable for improperly foreclosing upon a home. Under State and
Federal law, my office uses a comprehensive list of issues related to the legal nature of
the foreclosure proceedings to protect you and your home. Trustees do not want to be
held liable for wrongful foreclosure. Trustees will not foreclose on the property if there is
a potential violation pointed out to them prior to the auction sale date.
Our demands postpone your Trustee Sale date, stop the auction and keep you in your
home. Our clients are those denied a loan modification, denied a short sale or are simply
those who have a auction sale tomorrow and would rather stay in their home longer.
Often our clients go on to negotiate a loan modification or a short sale with the extra time